DUBAI: Amazon’s acquisition of online retail site Souq.com marks a “coming-of-age” of the Middle East ecommerce sector, technology experts said.
Souq plans to expand its workforce and operations after the US market leader clinched a deal to buy 100 percent of the Middle East player, executives from both firms said.
Amazon had walked away from talks with Souq.com earlier this year, but it reportedly came back with an offer of $650 million.
Amazon and Souq.com said earlier on Tuesday they had agreed on the takeover, despite an eleventh-hour bid by Dubai billionaire Mohamed Alabbar’s Emaar Malls to cut in with an offer it said was worth $800 million.
Executives have not disclosed the value of the Amazon deal, which adviser Goldman Sachs called “the biggest-ever technology M&A transaction in the Arab world.”
Sources with knowledge of the takeover said Amazon was paying less than Emaar’s offer, making it lower than Souq.com’s $1 billion valuation when it sought funding last year.
One source said Souq.com would have broken an exclusivity agreement with Amazon if it accepted Emaar’s bid at this stage.
“Amazon is a great fit with us. We have a lot of common values and it is all about innovation, technology and the type of customer experience and thinking that Amazon has,” Souq.com Co-Founder and Chief Executive Ronaldo Mouchawar told Reuters.
Technology expert Matthew Reed, practice leader for the Middle East and Africa at Ovum in Dubai, said that the deal was significant.
“The Amazon deal to buy Souq.com marks a coming-of-age moment for e-commerce in the Middle East,” Reed told Arab News.
“Currently, e-commerce in the region is less advanced than might be expected the given the relative affluence and high levels of broadband connectivity in the GCC states. But the arrival in the region of a global leader such as Amazon should help to develop and grow the e-commerce sector here.”
The deal will help grow an already major player in the Middle East online retail sector. Alabbar himself has advanced plans for the launch of Noon, slated as a $1 billion portal that will have a big initial focus on fashion and luxury products.
“Assuming the deal goes ahead, Noon will face tougher competition than it might have been expecting, as in Amazon it will be up against what many see as the world’s leading e-tailer,” Reed said.
P.K. Gulati, a Dubai-based technology investor, said that the Amazon-Souq deal was “awesome”.
“I think it’s great for the ecosystem — it’s great as a role-model deal, in the sense of people thinking that they can do it,” Gulati – who has made about 15 investments worldwide, mainly in Silicon Valley and India – told Arab News.
It was also remarkable given Amazon’s track record in business, he added. “Amazon has a reputation of not buying companies — rather, of making them.”
Gulati said that Alabbar’s unsuccessful 11th-hour bid for Souq simply came too late.
“Putting a counter-bid on a Friday was in my opinion probably too late… I think the deal was already done already by then.”
Noon may become a future player in the space, but such sites typically take some time to take off, Gulati added. It typically “takes three to five years for a platform to stabilize and become something which people like,” he said.
Souq.com, founded in 2005, stocks 8.5 million items on its website and generates about 50 million monthly visits, the site’s CEO Mouchawar told Reuters. It delivers to the six Gulf Arab states and Egypt.
Mouchawar said there was scope to expand the business with Amazon and to increase the 3,000-strong workforce to boost Souq.com’s reach, without saying by how many it would rise.
“We will continue to invest in our segment and grow our markets,” he said at Souq.com’s Dubai headquarters.
Despite its young, tech-savvy population, shoppers in the Middle East still prefer to shop in stores. Online retail accounts for less than 1 percent of total sales in the Middle East, according to market researcher Euromonitor International.
“We want to figure out how to grow the team here. If we’re going to grow the business we have to grow logistics, we have to grow technical development,” Amazon Senior Vice President Russ Grandinetti said.
In a deal document seen by Reuters, Goldman said the acquisition would accelerate Amazon’s entry into “attractive Middle East countries with significant growth potential.”
After the Amazon takeover, Middle East consumers will be able to buy products available on Amazon.com through Souq.com, and Middle East merchants will have access to a wider market via Amazon’s network.
The acquisition is expected to close later this year.
Souq.com’s current shareholders include South Africa’s Naspers Ltd. and Tiger Global Management.
The Amazon deal was backed by the Dubai government, which wants to use technology to expand its regional retail footprint.
Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum said in a statement it showed the city state’s position “as a regional and global hub for the world’s biggest and leading organizations.”
Amazon’s acquisition of Souq.com is seen as significant for the Middle East’s nascent tech sector.
“This is effectively a vote of confidence in the region. You have a major American company going into a digital company in the region,” said Fadi Ghandour, founder Dubai-listed logistics firm Aramex and a prominent venture capitalist in the Middle East.
— With Reuters
Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce
Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce
After 12 failed attempts over 2 years, Lebanon’s parliament will try to pick a president
- There are indications that Thursday’s vote may produce a head of state
- The leading candidate is Lebanese army commander Joseph Aoun
While 12 previous attempts have failed to choose a successor to former President Michel Aoun, whose term ended in October 2022, there are indications that Thursday’s vote may produce a head of state.
The leading candidate is Lebanese army commander Joseph Aoun, no relation to the former president. He is widely seen as the preferred candidate of the United States and Saudi Arabia, whose assistance Lebanon will need as it seeks to rebuild after a 14-month conflict between Israel and the Lebanese militant group Hezbollah.
Hezbollah previously backed another candidate, Suleiman Frangieh, the leader of a small Christian party in northern Lebanon with close ties to former Syrian President Bashar Assad.
However, on Wednesday, Frangieh announced he had withdrawn from the race and endorsed Aoun, apparently clearing the way for the army chief.
Lebanon’s fractious sectarian power-sharing system is prone to deadlock, both for political and procedural reasons. The small, crisis-battered Mediterranean country has been through several extended presidential vacancies, with the longest lasting nearly 2 1/2 years between May 2014 and October 2016. It ended when former President Michel Aoun was elected.
As a sitting army commander, Joseph Aoun is technically barred from becoming president by Lebanon’s constitution. The ban has been waived before, but it means that Aoun faces additional procedural hurdles.
Under normal circumstances, a presidential candidate in Lebanon can be elected by a two-thirds majority of the 128-member house in the first round of voting, or by a simple majority in a subsequent round.
But because of the constitutional issues surrounding his election, Aoun would need a two-thirds majority even in the second round.
Other contenders include Jihad Azour, a former finance minister who is now the director of the Middle East and Central Asia Department at the International Monetary Fund; and Elias Al-Baysari, the acting head of Lebanon’s General Security agency.
The next head of state will face daunting challenges apart from implementing the ceasefire agreement that ended the Israel-Hezbollah war and seeking funds for reconstruction.
Lebanon is six years into an economic and financial crisis that decimated the country’s currency and wiped out the savings of many Lebanese. The cash-strapped state electricity company provides only a few hours of power a day.
The country’s leaders reached a preliminary agreement with the IMF for a bail-out package in 2022 but have made limited progress on reforms required to clinch the deal.
Israeli military tightens media rules over war crimes prosecution concern
- Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots, an Israeli military spokesperson says
JERUSALEM: The Israeli military placed new restrictions on media coverage of soldiers on active combat duty amid growing concern at the risk of legal action against reservists traveling abroad over allegations of involvement in war crimes in Gaza.
The move came after an Israeli reservist vacationing in Brazil left the country abruptly when a Brazilian judge ordered federal police to open an investigation following allegations from a pro-Palestinian group that he had committed war crimes while serving in Gaza.
Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots and members of special forces units, Lt. Col. Nadav Shoshani, an Israeli military spokesperson told reporters.
The interviewees must not be linked to a specific combat event they participated in.
“This is our new guideline to protect our soldiers and to make sure they are safe from these types of incident hosted by anti-Israel activists around the world,” Shoshani said.
He said that under existing military rules, soldiers were already not supposed to post videos and other images from war zones on social media “even though that’s never perfect and we have a large army.” There were also long-standing rules and guidelines for soldiers traveling abroad, he said.
Shoshani said activist groups, such as the Belgium-based Hind Rajab Foundation, which pushed for the action in Brazil, were “connecting the dots” between soldiers who posted material from Gaza and then posted other photos and videos of themselves while on holiday abroad.
Last year, the International Criminal Court issued arrest warrants against Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, as well as a Hamas leader, Ibrahim Al-Masri, over alleged war crimes in Gaza, drawing outrage in Israel.
Shoshani said there had been “a handful” of cases where reservists traveling abroad had been targeted, in addition to the case in Brazil, all of which had been started by activist groups pushing authorities for an investigation.
“They didn’t open an investigation, they didn’t press charges or anything like that,” he said.
Syria is ‘the cornerstone for regional stability,’ GCC tells UN Security Council
- US representative says transition process and government that emerges from it must prioritize destruction of Assad regime’s chemical weapons stockpiles
- Syrian envoy says new Syria ‘willing to play a positive role in international arena … promote international and regional peace and security, will not engage in any conflict or war’
NEW YORK CITY: The Gulf Cooperation Council on Wednesday stressed the need to respect the independence and territorial integrity of Syria, reject foreign interference, combat terrorism and respect the country’s religious and cultural diversity as it embarks on a new chapter of its history after the fall of long-time dictator Bashar Assad.
Speaking on behalf of the GCC, Kuwait’s permanent representative to the UN, Tareq Albanai, expressed its support for a comprehensive and inclusive political process, moves toward national reconciliation, and efforts to rebuild the state.
He called for national unity and comprehensive dialogue, adding that the “stability of Syria is the cornerstone for stability in region.”
Albanai was speaking at the Security Council’s first meeting of the year on Syria. He told members that the GCC decided to participate in the meeting only “to confirm our determination to help the country politically, economically, developmentally and humanitarianly.”
GCC member states categorically reject the repeated attacks on Syria by Israeli occupation forces and call for their immediate withdrawal from Syrian territories, he added.
“We renew our firm position that the Golan is Syrian territory and condemn the expansion of Israeli settlements in the occupied Golan,” Albanai said.
He also called for the lifting of the economic sanctions imposed on Syria during the civil war.
Egypt’s permanent representative to the UN, Osama Abdel Khalek, speaking on behalf of the UN Arab Group, also condemned the ongoing Israeli occupation of the Golan Heights, and what he described as “Israel’s opportunistic exploitation of the current situation to occupy further Syrian territories, bomb cities and infrastructure.”
He urged the Security Council to intervene and put an end to the Israeli “aggression, occupation” and “the illegal presence of all foreign forces in Syria.”
Syria’s permanent representative to the UN, Kusay Aldahak, told the council that caretaker authorities in the country are willing to build “friendly relations with all UN member states based on cooperation and shared interests and away from the policies of polarization.”
He added that the “new Syria is willing to play a positive role in the international arena. It will promote international and regional peace and security, and will not engage in any conflict or war.”
Aldahak called on the UN to “immediately and fully lift the unilateral coercive measures; provide necessary financing to meet needs and recover basic services, mainly electricity; support livelihood projects and sustainable development; reconstruct damaged service facilities; ensure de-mining; rid Syria of the remnants of war; and allow dignified refugees to return to their cities and homes.”
The UN’s humanitarian chief, Tom Fletcher, told council members that close to 13 million Syrians face acute food insecurity at a time when the World Food Programme has been forced to reduce the amount of food assistance it provides by 80 per cent in the past two years as a result of funding shortfalls.
More than 620,000 Syrians remain displaced as a result of the operation to remove Assad in November and December, on top of the 7 million who had already been displaced by more than a
decade of civil war. In the northwest of the country alone, 2 million people are living in camps, Fletcher said.
US ambassador Dorothy Shea said the transition process and the Syrian government that emerges from it must ensure any chemical weapons that remain in the former Assad regime’s stockpiles are secured and destroyed.
“We are encouraged by the cooperation to date and call for the continued commitment of relevant actors in Syria to work with the Organization for the Prohibition of Chemical Weapons, the United Nations, and other state and non-state partners to chart a course for the complete and verifiable elimination of any remaining elements of a chemical weapons program, and assist released detainees and the families of those whose whereabouts remain unknown,” she said.
Shea also urged the interim government to deter individual acts of vengeance, and to partner with international institutions to identify ways to ensure that those guilty of war crimes and crimes against humanity are held accountable.
Shea said the US welcomes “positive messages from Hayat Tahrir Al-Sham but will ultimately look for progress in actions, not words. We are looking for actions and words that will explore policies that prioritize the well-being of the Syrian people.”
The UN’s special envoy for Syria, Geir Pedersen, said he stands ready to work with the caretaker authorities “on how the nascent and important ideas and steps so far articulated and initiated could be developed towards a credible and inclusive political transition.”
The UK’s permanent representative to the UN, Barbara Woodward, said she was encouraged by the timelines set by the interim authorities for drafting a new constitution and holding elections and a national dialogue, and by their early engagement with the international community.
She called for their continued cooperation with UN as she welcomed the caretaker government’s efforts “to secure the chemical weapons stock and work with OPCW to fully declare and verify the destruction of such weapons. Now is the moment to close the Syria chemical weapons file once and for all.”
Russian ambassador Vassily Nebenzia said: “Syria has more than enough problems and their severity should in no case be underestimated.”
He warned of the “fairly high risk of intensification of hostilities” in many parts of the country, in particular Aleppo and Quneitra. He also highlighted “the direct threat to the territorial integrity of Syria” arising from “the unlawful actions of Israel, which is carrying out a policy of fait accompli in the occupied Golan Heights, and 500 square kilometers of Syrian land have already been seized.”
Nebenzia blamed sanctions imposed by the US “and its satellites” for exacerbating the humanitarian crisis in the country. As result of these sanctions, the Syrian economy is “under extreme pressure and is not able to cope with the challenges facing the country,” he added.
Egypt unveils ancient rock-cut tombs and burial shafts in Luxor
CAIRO: Egypt unveiled several discoveries near the famed city of Luxor on Wednesday, including ancient rock-cut tombs and burial shafts dating back 3,600 years.
They were unearthed at the causeway of Queen Hatshepsut’s funerary temple at Deir Al-Bahri on the Nile’s West Bank, according to a statement released by Zahi Hawass Foundation for Antiquities & Heritage. It said it worked in tandem with the Supreme Council of Antiquities on the site since September 2022.
Artifacts found at the tombs included bronze coins with the image of Alexander the Great dating to the Time of Ptolemy I (367-283), children’s toys made of clay, cartonnage and funerary masks that covered mummies, winged scarabs, beads and funerary amulets.
Hawass told reporters that the discoveries could “reconstruct history” and offer an understanding of the type of programs ancient Egyptians designed inside a temple.
The Archeologists also found the remains of Queen Hatshepsut’s Valley Temple, rock-cut tombs dating back to the Middle Kingdom (1938 B.C. — 1630 B.C.), burial shafts from the 17th dynasty, the tomb of Djehuti-Mes and part of the Assassif Ptolemaic Necropolis.
The rock-cut tombs had been previously robbed during the Ptolemaic period and later. Still, the Egyptian teams uncovered some artifacts such as pottery tables that were used to offer bread, wine and meat.
Inside the burial shafts dating back to 1580 B.C. — 1550 B.C., anthropoid wooden coffins were found, including one that belonged to a young child. It remained intact since its burial some 3,600 years ago.
Libya’s eastern parliament approves transitional justice law
- The UN mission to Libya has repeatedly called for an inclusive, rights-based transitional justice and reconciliation process in the country
TRIPOLI: Libya’s eastern-based parliament has approved a national reconciliation and transitional justice law, three lawmakers said, a measure aimed at reunifying the oil-producing country after over a decade of factional conflict.
The House of Representatives spokesperson, Abdullah Belaihaq, said on the X platform that the legislation was passed on Tuesday by a majority of the session’s attendees in Libya’s largest second city Benghazi.
However, implementing the law could be challenging as Libya has been divided since a 2014 civil war that spawned two rival administrations vying for power in east and west following the NATO-backed uprising that toppled Muammar Qaddafi in 2011.
“I hope that it (the law) will be in effect all over the country and will not face any difficulty,” House member Abdulmenam Alorafi told Reuters by phone on Wednesday.
The UN mission to Libya has repeatedly called for an inclusive, rights-based transitional justice and reconciliation process in the North African country.
A political process to end years of institutional division and outright warfare has been stalled since an election scheduled for December 2021 collapsed amid disputes over the eligibility of the main candidates.
In Tripoli, there is the Government of National Unity under Prime Minister Abdulhamid Al-Dbeibah that was installed through a UN-backed process in 2021, but the parliament no longer recognizes its legitimacy. Dbeibah has vowed not to cede power to a new government without national elections.
There are two competing legislative bodies — the HoR that was elected in 2014 as the national parliament with a four-year mandate to oversee a political transition, and the High Council of State in Tripoli formed as part of a 2015 political agreement and drawn from a parliament first elected in 2012.
The Tripoli-based Presidential Council, which came to power with GNU, has been working on a reconciliation project and holding “a comprehensive conference” with the support of the UN and African Union. But it has been unable to bring all rival groups together because of their continuing differences.
